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Lithium plays a vital role in electric vehicle (EV) battery technology, and analysts predict 75% of all mined lithium could go to EVs by 2025. However, not all companies are expected to benefit from the industry tailwinds in the near term.
LAC generated roughly $400 million in gross proceeds in January 2021 from a public offering of its shares. It is expected to use the net proceeds to fund the development of the Thacker Pass lithium project, among others. Furthermore, LAC was caught up in controversy regarding its Nevada mine, which has yet to generate revenue. So, the stock’s near-term prospects seem bleak.
